TACKLING THE NEXUS- Bioenergy and Food Security in Tanzania

Transcription

1 TACKLING THE NEXUS- Bioenergy and Food Security in Tanzania Presented by J. Mngodo At the Second FAO Technical Consultation on Bioenergy and Food Security (BEFS), Rome, 5-6 February, 2008

2 Contents Country Profile Energy Demand and Supply Situation Bioenergy and Food Security Concerns on Food Security Government Policy and Initiatives on Biofuels Status of biofuels in Tanzania Policy Objectives Bioenergy Strategy Country Specific Scenario Conclusions

3 The United Republic of Tanzania is located in Eastern Africa between Longitude 29 and 41 East and Latitude 1 12 South in an area of 945,00km2 Country Profile The country comprises of the Mainland and Zanzibar, with a total projected population of 41 Million people in Manyara

4 Country Profile Cont d Tanzania has common borders with the following countries: North : Kenya and Uganda West: Rwanda, Burundi and Democratic Republic of Congo South: Zambia, Malawi and Mozambique East: The Indian Ocean The country s area of 945,000Km2 includes land 881,000km2 (Mainland), and 2,000km2 (Zanzibar), Inland Water 62,000km2 and forest and woodlands 3,350km2

5 Country Profile Cont d Agricultural Resources Arable land Land under cultivation Irrigation potential High Irrigation potential Medium Irrigation potential Currently developed Large and Medium scale farms 44.0 mil. ha mil. ha mil. ha. 2.3 mil. ha. 4.8 mil. ha mil. ha. 1.5 mil. ha.

6 Country Profile Cont d Tanzania has predominantly a tropical climate and soils of varying levels of fertility conducive for supporting growth of energy crops and with potential for high yields There are two rainfall regimes, a Bimodal one characterized by short and long rains in regions around Lake Victoria Basin, North-eastern Highlands and North-eastern Coast and hinterland areas. A Unimodal rainfall regime is experienced in the rest of the country between November and April.

7 Country Profile Cont d Tanzania s economy is predominantly agricultural contributing to about 45% of GDP and 30 percent of export earning while providing employment to over 75 % of the population. Agricultural growth rates have ranged between 3.3 % in to 5 % in , The crops sub-sector sector the dominant contributing about 35% of GDP at an annual growth rate of 3.8 % Food and cash crops accounts for about 70 % of rural incomes

8 Energy demand and supply situation The current energy supply to Tanzania is in two main categories namely; conventional and non-conventional (traditional) energy. Conventional energy includes imported petroleum products and electricity. The main traditional source of energy is woody and non-woody biomass; coal and other renewable sources of energy.. Besides woodfuel,, the country has considerable biomass resources in form of agricultural and forest residues and animal wastes which, all together account for about 90% of the nation s energy requirement.

9 Energy demand and supply situation In Tanzania, commercial energy is basically provided by electricity while in rural households it is predominantly from biomass. The major sources of Electricity are: generation from Hydro, thermal and natural gas power plants with imported petroleum products contributing significantly. The energy products are consumed in all sectors of economy including transport industry, house hold, mining and agriculture.

10 Energy Consumption pattern of Tanzania Electricty, 1.2, % Oil and Gas, 7% Coal, solar, and wind, < 1.0,% Biomass Oil and Gas Electricty Coal, solar, and wind Biomass, 90, %

11 Petroleum use pattern in Tanzania Petroleum use pattern Household (21%) Others 4% Transport (40%) Industry (24%) Agriculture (11%)

12 Energy demand and supply situation The commercial energy is dominated by unpredicted increasing prices of energy sources at the world market. This has created insecurity and uncertainty in the sectors that entirely depend on them and significant impact on the overall economy. This reflects heavy reliance on imported petroleum products

13 Energy demand and supply situation In the last Five years energy crises have been a common feature particularly with the hydropower plants frequently facing acute shortage of water due to shortage of rainfall and this has led to; Very low power production capacity of the generation plants. High cost of generation of power using thermal power plants that are fuelled by imported petroleum products. Generation of electricity through locally exploited natural gas is so far not well developed to satisfactorily cater for local demand

14 Bioenergy and Food security In view of the crises in electricity generation and supply development of bio-energy sources is seen as complementing the traditional fossil fuel based systems. Availability of Land, water, and labour resources coupled with a good political supportive and stable environment provides a potentially conducive atmosphere for the development of the already available bio-energy sources in Tanzania.

15 Bioenergy and Food security cont d Increasing interest of potential local and foreign investors to develop bioenergy offers an opportunity for expansion of bioenergy production. Potentiality exists for both household level and commercial consumers for bioenergy products, There is an increasing awareness of the effects of the overdependence and exploitation of the traditional bio mass as a major source of energy

16 Bioenergy and Food security cont d Increased production and use of bioenergy can help diversify agricultural and forestry activities, improve food security to some sections of the population, contribute to sustainable development and mitigate climate change by replacing fossil fuels that produce greenhouse gases.

17 Concerns on food security Tanzania has currently not achieved food security. Converting main sites identified as suitable for growing food crops to produce biofuels crops may compromise food security as land for production of food crops diminishes. Growing competition for growing biofuels may lead to increased grain production for biofuels due to price incentives and thus reduction of food availability and resultant high prices of food affecting food security of the poor due to limitation of access to food.

18 Concerns on food security With growing investor interest in acquisition of land for biofuel crops, small scale farmers may be losing land and fall into destitution given more than 75 % of the population is rural based and mostly engaged in crop production. Some areas identified as suitable for biofuels production are adjacent to rivers which farmers depend on. Irrigation in large farms may lead to conflicts over access to water

19 Concerns on food security Large scale, export oriented production of biofuels would require large scale monocultures of trees, sugarcane, jatropha,, and oil palms among others, thereby lead to simplification of agro-systems associated with decrease in crop and farm biodiversity

20 Govt. Policy and initiatives on Biofuels Though much interest from investors both local and foreign exists, currently the Tanzanian bioenergy industry is still at an infancy stage and there is no specific biofuels policy. A Biofuels task Force was established in April 2006 to promote the development of the subsector and legislation to stimulate use of biofuels The Task Force is charged with designing policies and regulations suitable to local conditions, bioenergy partnership, promoting applied research and development Currently Draft Guidelines are being prepared with a view to guide the development of biofuels and co-generation in the country.

21 POLICY OBJECTIVES The Government is in the process of putting in place a conducive policy environment. Developing Bio-energy with a view to contribute to enhancement of energy security for economic development. This includes Diversification of energy sources and reducing dependence on fossil fuels which are plagued by volatile price increases over time Conforming with national and international poverty reduction goals under the National Strategy for Growth and Reduction of Poverty (NSGRP MKUKUTA) and MDGs Rural electrification with a view to developing rural areas creating rural employment through establishing agro-processing

22 Policy Objectives cont d Improving the country s welfare with a cleaner environment through reduction of emission of pollutants Conformity with international conventions and agreements such as the Kyoto Protocal Benefitting from international arrangements for accessing Clean Development Mechanism (CDM) resources and carbon trading.

23 Bioenergy strategy A specific Bioenergy strategy has not yet been developed. Draft Guidelines are being developed as mentioned. Direction may focus: Developing domestic power generation capacity based on indigenous fuel based resources in order to meet local and regional trade requirements through both local and regional trade. Encouraging investments in bioenergy on account of socio-economic dimensions including creating employment, empowering communities and rural development

24 COUNTRY SPECIFIC SCENARIO The Policy objectives of bio-mass use are focussed on efficient exploitation of biomass for power generation. Investments in bioenergy will contribute to utilisation of biomass from crops and increased electricity generation at household, community and national levels. A wide range of crops including grains, oilseeds and crops as well as root crops in addition to industrial fibre crops such as sisal offers potential for biofuels. Biomass co-generation plants is becoming an important areas of exploiting the biomass in sugarcane, sisal and wattle for electricity generation.

25 Selection of biomass chains In Tanzania biomass chains have focussed on four major crops: Jatropha Sugarcane Oil palm Sisal Other crops with potential include Cassava, Sweet Sorghum and Sunflower

26 Areas Earmarked for Biofuels Crops Production Jatropha curcas Palm Oil Sunflower (Special seed from Japan) Croton microstachys Sugarcane Areas with sugarcane plantation for sugar production

27 Areas Earmarked for Biofuels Crops Production Most areas currently earmarked for development of bioenergy crops are around the periphery of the country. These include mainly oil seeds/crops, grains, root crops and industrial fibre crops.

28 Jatropha Chain Much interest in the development of bioenergy has focussed on production of Jatropha which so far is the most common plant for biofuel production. This promising biofuel oil based plant grows well on marginal lands of Tanzania.

29 Cultivated as: Jatropha Cont d a large scale estate crop as well as by smallholders particularly as hedge or under Contract farming arrangements Promoted to be used as biodiesel for running diesel engines. However, the market for biodiesel/biofuel in the country is currently not well developed. Most of the large investors are currently developing biofuels with a view to target external markets.

30 Jatropha Chain cont d Specific regions where the crop is produced include: Kilimanjaro- plantation at Kikuletwa Rukwa contract farming. Other areas with potential for production are Arusha,, Mara, Mbeya, Ruvuma, Iringa, Morogoro, Dodoma, Singida, Kigoma, Lindi and Mtwara regions. Since the bioenergy industry is not well developed Jatropha plantations for seed production are not common

31 Oil Palm Chain It is an important crop mainly in the western part of the country and has a potential in the coastal regions. Cultivated : by smallholders particularly as hedge or under Contract farming arrangements has potential for a large scale estate type

32 Oil Palm Chain cont d Specific regions where the crop is produced include: Kigoma- mainly small holders. Large scale estate type is being introduced Other areas with potential for production: Coast region where contract farming may be the major approach.

33 Sugarcane Chain Sugar cane has been grown primarily for production of sugar. Currently sugar processing plants through co- generation have been generating electricity which is being sold to the power supply company. Cultivated by both : smallholders under Contract farming arrangements using rainfed agriculture large scale estate type with irrigated system

34 Sugarcane Chain Specific regions where the crop is produced include: Kilimanjaro- plantation TPC. Kagera Plantation, Morogoro (Kilombero contract farming /plantation and Mtibwa) Other areas with potential for production: Coast regions earmarked mainly for bio-ethanol production.

35 Possible Policy Instruments In the absence of specific policy Subsidies, carbon and energy taxes, fixed prices etc. are currently not being applied In future other instruments such for promoting biofuels including Fuel tax incentives, environmental protection measures may be considered.

36 Agricultural management Systems Mainly Mono-crops culture particularly among the estates Intercropping with other crops though reflects competition of crops for nutrients. This is mainly among smallholders Hedge for crops such as Jatropha and sisal Strip faming where rows of a biofuel crop are separated with rows left fallow.

37 Agric management Syst.. Cont d The intercropped biofuels normally are affect by competition leading to low productivity Inquiries from investors in bioenergy received by the Government are increasing and hence the process for developing guidelines for biofuels which is expected to be out by 2009.

38 Environmental protection National Environmental Management Act in place -under environmental watchdog NEMC All developers/investors in agricultural/biofuels crop production are required to carry out Environmental Impact Assessment. Developers/investors in agricultural/biofuels crop production are required to adhere to recommended production practices.

39 Time frame of Developments Following Increased interest on biofuels,, A National Biofuels Task Force was established in April, 2006 Subsequently among other tasks the NBTF set out to develop Guidelines for Biofuels and Co-generation. The Guidelines are in Draft. They will be discussed by stakeholders before finalization during 2008/2009. Currently a Comprehensive action plan for development of Biofuels in progress and depending on funds availability to be implemented through a project: Strengthening the policy, legal, regulatory and institutional framework to support the development of a sustainable biofuels in Tanzania.

40 Examples of investments Though the biofuel development in Tanzania is still at infancy, there is a growing interest among both local and foreign investors Examples of demonstrated interest is from M/S Bio- Alcohol Fuel Foundation (BAFF) of Sweden, Svensk EtanolKemi AB (SEKAB) of Sweden intending to develop about 400,000 ha of sugar cane for bioethanol under estate farming. and Community Finance Limited (CFC) of Tanzania

41 Examples of investments cont d Companies already working on biofuels Prokon of Germany [Mpanda[ Rukwa developing 1,000 ha of jatropha under outgrower contractual arrangements], WILMA from United Sates [Croton[ spp.) (muhihi) Biharamulo, Kagera]; Mitsubishi Corporation of Japan [Arusha[ and Dar es Salaam], FELISA a Tanzanian and Belgium company [Oil palm, Kigoma]

42 Examples of investments cont d KAKUTE of Arusha Tanzania [jatropha[ jatropha, Arusha,] Diligent Dutch Firm [jatropha Oil Arusha] under both contract farming and promotion of jatropha hedge farming by smallholders. Diligent have secured markets. Other areas are Makanya in Same, Kilimanjaro through water harvesting and irrigating jatropha, Engaruka, babati, Chalinze, Pangani and Singida. Sun Biofuels planning 18,000 ha of jatropha in Lindi TaTEDO of Tanzania [jatropha] And others

43 Conclusion The biofuels development in Tanzania is increasingly gaining importance and momentum and there is scope for more expansion. Proper planning, coordination and appropriate policy, legal and regulatory frameworks would be instrumental for providing a conducive environment for sustainable biofuels development to achieve the desired objectives. The internationally developed framework currently in progress could be instrumental in ensuring that the benefits of biofuels development do not compromise on food security and livelihoods of Tanzanians, particularly the resource poor.

44 ASANTE SANA THANK YOU